DRAM spot prices expected to surge

But not for long

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The spot price for 64Mb DRAM chips is set to rise, but any recovery will be shortlived, according to a Commerce Times article carried in AsiaBiztech.

Manufacturers, system builders and distributors are expected to restock their inventories in mid-October, to prepare for the Christmas buying season. The spot price is expected to "recover by mid-November, as bargain-hunting buying is waiting for the right time to break into the market".

However this recovery will be shortlived, because of underlying weak demand, analysts say. According to the Commerce Times, pessimists still outnumber optimists among DRAM manufacturers.

Currently, 64Mb DRAM spot prices are around $6 -$6.30, compared with a contract price of $7. Europe is the key factor in demand levels, according to AsiaBiztech as it has the "world's largest DIY PC market". ®